NIFTY Outlook for Wednesday, 15th July | 50x Investments

Jul 14, 2020

NIFTY - Technical Analysis:

• On the daily chart Nifty broke into the previous wedge after giving a failed breakout
  
• There was a big OI build up for weekly call options at 10700 strike, indicating that writers are confident that Nifty won't cross 10,700 levels in the next 2 days
  
• MACD entered negative levels, giving out a strong sell signal
  
  NIFTY - Driving Factors:
• The hangover of poor TCS numbers is still being felt in the IT space
  
• Banks and NBFCs reeling under the pressure of potential rise in NPAs, Bank Nifty was down by over 3% today
  
• Biocon was the shining star in today's trade, rising almost 5.2% because of their new drug announcement to treat severe COVID cases
  
  NIFTY - Outlook for Tomorrow, 15th July:
• A failed breakout of a wedge usually leads to test of the lower trend-line and might even go all the way down to the start of the trend if the bearish pressure continues
  
• 10,544 (lower trend-line) and 10,390 (23.6% retracement level) will be crucial support levels
  
• Infosys is set to announce its Q1 FY21 results tomorrow. If TCS's earnings are anything to go by, Infosys' results might further add to the bearish pressure.